1. B to B Marketing Devising a Strategy

2. Designing industrial Strategies Learning and Experience Curve The Generic Value Chain The SCA The Generic Strategies The 5 Competitive Forces

3. Learning Curve Experience Curve

4. The Learning Curve Nb of batches Cost Kaizen Innovation

5. Market Share Cost The Experience Curve

6. The Profit Curve Market Share ROI : Return on Investment ROI = Profit/Investment = Profit/ Sales * Sales/Investment

7. The Market Theory A company is to assess against its market All companies are bound to match the key parameters of the incumbent industry Hence, the market share is key to assess each company’s performances

8. The Generic Value Chain

9. Firm Infrastructure Human Resource Management Research & Development Procurement Inbound Logistics Operations Outbound Logistics Mkg & Sales Service Margin Core Business Activities Support Activities Source : Michael E Porter The Generic Value Chain

11. Economies of Scale in Overhead Costs Blending Grape Purchasing Firm Infrastructure HR Management Technology Dev Procurement Inbound Operation Outbound Marketing Service Logistics Logistics & Sales National Advertising Sales Force Use Source : Michael Porter Backward Integration into bottles Bottling Speed Bulk Shipments to Wholesale and Super Sources of Cost Advantage at Gallo wines

12. The SCA

13. ADVANTAGE Market Value Sustainable through time Source : Michael Porter The SCA : sustainable Competitive Advantage

14. Companies maintaining SCA

15. THE WAY YOU COMPETE Product Strategy Positioning Strategy Manufacturing Strategy Distribution Strategy Where you compete Product market selection BASIS OF COMPETITION Assets & Skills WHOM YOU COMPETE AGAINST Competitor Selection WHERE YOU COMPETE Product/Market Selection SCA 4 Elements of a SCA

16. The Generic Strategies

17. DIFFERENTIATION INNOVATION Benefits & Advantages COST SUPERIORITY PRODUCTIVITY Price advantage perceived 2 Generic Strategies

18. Differentiation Cost Hidden Output Focus Niche Large Target Narrow Domination by Source : Michael Porter 3 Generic Strategies

19. 3 Companies, 3 Strategies 3,3 million cars €56.2bn 2005 Profit 4,4% 1,3 millions cars €46.7bn 2005 Profit 6,8% 0,097 millions cars €7.3bn 0506 Profit 28%

20. 3 Generic Strategies Differentiation Cost Hidden Output Focus Niche Large Target Narrow Domination by Source : Michael Porter

21. Control your destiny, or someone else will Face reality as it is Be candid with everyone Don’t manage, lead Change before you have to If you don’t have a competitive advantage, don’t compete Jack Welch’s Principles

22. The 5 Competitives Forces

23. SUPPLIERS Bargaining Power CUSTOMERS Bargaining Power COMPETITORS SUBSTITUTES POTENTIAL ENTRANTS Source : Michael E Porter The 5 competitive Forces

24. Airbus vs Boeing A duopole ?

25. Sales €bn 37 36.9 Op Profit 2,94 1.64 Headcount 59 00085 553 Nb units shipped 258 227 Les Echos Source Sociétés 2012 Commercial Aviation Airbus and Boeing Head to Head

26. Airbus has filled the Gap Boeing Airbus

27. Competition in Long-Haul

28. Reading « A dogfight for the duopoly : Airbus and Boeing” –The Financial Times August 7 2012

29. List of Suppliers

31. Huge Needs ahead + 21 000 aircrafts for the next 20 years

32. Market is moving East Demand stirred by Emergents Asia Pacific is the rising area

33. SUPPLIERS Bargaining Power CUSTOMERS Bargaining Power COMPETITORS SUBSTITUTES POTENTIAL ENTRANTS Barriers to Integration  Entry Barriers     Source : Michael E Porter The Competitives Forces at Work

34. SUPPLIERS Bargaining Power CUSTOMERS Bargaining Power CONTENDERS SUBSTITUTES POTENTIAL ENTRANTS Barriers to Integration  Entry Barriers     Source : Michael E Porter Airbus Competitive Analysis

35. General Rules The collective strength of these forces determines the ultimate profit potential of an industry –Tyres vs Soft Drinks The strongest Competitive Force or Forces determine the profitability of the incumbent industry

36. Conclusions The learning curve and the experience curve help maximize profit The Generic Value Chain allows to identify and foster fields of value creation A company aims to develop a SCA 3 generic strategies are followed by industries The 5 competitive forces shape an industry and assign profit to each intermediary